Foreign portfolio investors (FPIs) pulled out a net Rs 35,475 crore from Indian equities this week amid the ongoing West Asia conflict. Total net selling in March has now reached a record Rs 88,180 crore, reflecting cautious investor sentiment.
FPIs Pull Rs 35,475 Crore from Indian Equities This Week
Foreign portfolio investors (FPIs) continued their selling spree in the Indian equity markets this week, with net outflows standing at Rs 35,475 crore amid ongoing military conflict in West Asia, according to data from National Securities Depository Limited.
The data showed that the highest selling during the week was recorded on Monday, with net outflows of Rs 10,827 crore. This was followed by selling of Rs 9,406.78 crore on Tuesday and Rs 4,376.02 crore on Wednesday. Thursday was a settlement holiday due to the Gudi Padwa festival, while on Friday FPIs sold equities worth Rs 10,965.74 crore.
Overall, the continued selling pressure reflects cautious sentiment among foreign investors amid geopolitical uncertainty and rising global risks.
Record Monthly Outflows in March
So far in March, total net selling by FPIs has reached Rs 88,180 crore, making it the highest monthly outflow recorded in 2026. The figures include selling in stock exchanges after adjusting for investments in primary markets and other segments.
Expert Commentary on Market Sentiment
Market experts said that persistent global concerns, particularly due to tensions in West Asia and elevated crude oil prices, have weighed on investor sentiment. Vinod Nair, Head of Research at Geojit Financial Services, said, “Market sentiment remained cautious amid persistent Middle East tensions during the week, with elevated crude oil prices, and continued FII selling. Although the domestic equities saw a brief relief-led recovery on valuation comfort and short covering early in the week, the rally quickly reversed as renewed Middle East attacks pushed crude prices higher, reviving inflationary and macroeconomic concerns.”
Understanding Foreign Portfolio Investment (FPI)
Foreign Portfolio Investment (FPI) refers to investments made by overseas investors in financial assets such as stocks, bonds or mutual funds in another country. These investments are typically made for short-term gains and do not involve control over the company. FPIs are often referred to as “hot money” due to their high liquidity and ability to move quickly in and out of markets, making them a key driver of capital flows in emerging economies like India. In India, FPI investments are regulated by the Securities and Exchange Board of India.
The sustained outflows highlight the impact of global uncertainties on Indian markets, with investors closely tracking geopolitical developments and crude oil price movements for further direction.
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